Monthly Property News 7th Edition 2024.
“Time to reflect and set goals”
Hi everyone, I’m Jason Mudford from OBrien Corporate with the seventh edition of the monthly property news for 2024.
Last week, the Australian Bureau of Statistics (ABS) released household wealth data for the March quarter and despite the cost-of-living pressures we are growing wealthier without us even lifting a finger. The findings showed Australians collectively became $431 billion richer or 2.7% wealthier. Most of the increases in our household wealth came for our superannuation balances, the share market and the property market. All these investment vehicles make us money while we are sleeping, and that is probably one reason why we don’t always feel wealthier because we are unconscious to it.
Despite a drop in homes prices for the month of June across Metro Melbourne and Regional Victoria, PropTrack, a subsidiary of realestate.com.au estimates Melbourne homeowners in this new financial year are set for a windfall of up to $55,000 after tipping the city to have 3 to 6 per cent growth which will be the biggest uplift in the past two years after there has been multiple interest rate hikes since May 2022.
Buyers in this new financial year get a major boost this week as tax cuts will add thousands of dollars to the buying budgets. Canstar calculates homebuyers earning $96,000 a year will have a $20,000 boost to their budgets as banks factor the cuts into their borrowing capacity. Also, from July 1 there is 50,000 new Home Guarantee places, under the federal plan, 35,000 for metro areas, 10,000 for regional areas and 5,000 for single parents. The scheme guarantees home loans with applicants needing as little as 5 per cent deposit which also helps buyers avoid lenders mortgage insurance.
The easing of rental growth continues however Melbourne is still performing strongly against all capital cities apart from Perth. Builders have been hit with a 53% surge in insurance premiums which puts a dagger through the hearts of those hoping for deflation in building costs. The ABS latest building approvals confirmed the shortage of building approvals is continuing with the annual run rate indicating we are roughly 90,000 below the Federal government’s target after hitting 10 year lows in approvals.
In other good news for the fresh new financial year superannuation jumps too from 11 to 11.5%, minimum wages earners get a 3.75% increase, and rent assistance goes up 10%.
That’s all for this month, remember the information provided is of a general nature, you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.
Check out our website for:
Scheduled Auctions
This Week’s Opens
Our Suburb Reports
